Restaurant search and food ordering company Zomato said that it plans to invest $40 million in its nascent food-ordering business in the next six months to capture a dominant chunk of the market in India and the United Arab Emirates (UAE).
Talking to Mint, Deepinder Goyal, co-founder Zomato said, “We do not require much cash for the existing business and can dedicate maximum money towards building this new business.”
Zomato launched its online ordering service in May this year, and offers customers access to 15,000 restaurants across 14 cities in India. The company claims that in less than a year of operations, its ordering business is growing 50% month-on-month.
The Gurgaon-based firm, which has spent Rs.1.2 crore on its latest television campaign, expects the food-ordering business to operationally break even by March.
According to Goyal, the company will continue to focus on keeping customer acquisition costs low and stay away from the discounting war that has largely been responsible for early consolidation in the food tech sector in the country.
Form the past few months, the company is aggressively expanding its food ordering business by tying up with food giant as Burger king and Dunking Donuts, among others.
]It has also recently introduced an in-app chat feature, enabling consumers to chat with the team at Zomato for any order-related queries. This feature is currently available for users in India and UAE.
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Founded in 2008, Zomato is backed by Infoedge, Singapore’s Temasek Holdings Pte, Sequoia and Vy Capital. The company was valued at a billion dollars in September when it raised USD60 million in fresh capital, largely from Temasek.